Dhammika Perera has acquired a 39 percent stake in Sri Lanka’s Laugfs Group, marking a major shift for the diversified conglomerate as co-founder Thilak de Silva exits, paving the way for fresh investment and regional expansion.
Billionaire invests in diversified Sri Lankan energy and retail group
Dhammika Perera, one of Sri Lanka’s most prominent businessmen, has bought into the Laugfs Group with a 39 percent shareholding, signaling renewed confidence in the diversified company. The move comes as founder director and Deputy Chairman Thilak de Silva stepped down, saying the decision was made to ensure the group’s long-term survival.
Laugfs has built a wide portfolio over three decades, with businesses spanning liquefied petroleum gas (LPG), shipping, renewable energy, retail, fuel distribution, manufacturing, and supermarkets. It also owns South Asia’s largest LPG transshipment terminal in Hambantota and operates a shipping fleet to support regional energy trade.
Laugfs Gas, the flagship LPG arm, reported gross profits of 888 million rupees for the June quarter but faced heavy finance costs of 733 million rupees, resulting in a quarterly loss. The company carries 12 billion rupees in long-term loans and 19 billion rupees in short-term borrowings, underscoring the need for new financial strength. Market estimates suggest Perera’s acquisition could be valued between 5 and 7 billion rupees, though the final transaction price has not been disclosed.
Laugfs Power CEO Mithila Wegapitiya said Perera’s entry positions the group to evolve into a significant regional energy player. He added that Perera’s involvement would help unlock the true potential of the company, which currently records a top-line revenue of around 300 million dollars annually.
Founded in 1994 by de Silva and Chairman W.K.H. Wegapitiya, Laugfs began with vehicle LPG conversions before expanding into energy, retail, rubber manufacturing, pharmaceuticals, and even operations in Bangladesh. While most of its ventures have been greenfield projects developed from scratch, the company has faced challenges in recent years, particularly during Sri Lanka’s economic crisis and forex shortages that disrupted gas imports.
De Silva acknowledged that stepping aside was difficult but necessary, stating that the brand would now have the strength to survive and grow under Perera’s leadership. The partnership is expected to provide the muscle needed for Laugfs to secure financial stability, strengthen its energy business, and expand across South Asia.